Aug. 27--An Internal Revenue Service watchdog called it "the largest, most pervasive impersonation scam" in his office's history, with 650,000 reported incidents since 2013 and so far 4,200 victims losing $21.5 million.
In testimony Wednesday before the U.S. Senate Budget Committee, the Treasury Inspector General for Tax Administration said taxpayers are being targeted by scam artists who call them posing as IRS agents and tell them they owe taxes and have to buy prepaid debit cards loaded with money.
The scam perpetrators then later instruct the victims to read them the number on the prepaid cards.
J. Russell George, inspector general for tax administration, testified that his office gets more than 9,000 reports a week of such attempts. George's office audits and investigates the IRS, and reports to the treasury secretary.
Victims have lost an average of about $5,100, with one individual losing more than $500,000.
"The phone impersonation scam has proven to be so large" that George said it's one of his office's top priorities.
"It's a surprisingly effective and fast way to steal taxpayers' money, and in this fast-paced electronic environment, the money can be gone before the victims realize they have been scammed," George testified.
George has advised consumers to hang up if they get such calls. The IRS typically first contacts people by mail, not by phone, about unpaid taxes.
byerak@tribpub.com
